Instagram in the Finance Industry: Insights
Using Instagram as a customer service platform can lead customers into becoming a fraud victim because 85% of the young Brits have already revealed their banking details on Instagram.
USING INSTAGRAM AS CUSTOMER SERVICE? STATISTICS SHOW MOST YOUNG BRITS SHARED THEIR BANKING DETAILS ON INSTAGRAM WHICH CAN LEAD TO FRAUD
- Eighty-five percent of young people in Britain shared their banking details on Instagram, using their information details which can lead to ID theft and fraud.
- Six percent said they allow someone remote access to their bank account.
- Data shows that 47% of scams in 2018 were people under 30 and 52% said that they are approached by scammers on social media such as Instagram.
- Research found that 33% of under 25s have copied celebrity posts.
- Young Brits, according to bank research stated that 87% shared their personal information on social media such as posting photos on their Instagram.
- Ten percent of celebrities confessed they had shared the name of a pet on Instagram and also used it as a password. This can lead to fraud later as the bank research reported.
CUSTOMERS CAN USE INSTAGRAM TO FIND THEIR PREFERRED FINANCIAL ADVISERS AND USE IT AS A CUSTOMER SERVICE PLATFORM PERSONALLY
- Instagram in UK has 14 million active users according to reports, with 64% under 30 and 46% have a household income of over £48,000 per year. Because of this, large financial brands build relationship with young people in their 20s, for example UBS.
- Nucleus Financial Group stated that Instagram is fertile soil to attract clients for financial advisers.
- Instagram can be used to attract clients because financial advisers can build community with the case of their clients and make posts that shows that the effectiveness of their financial advice.
- Statistics show 60% of UK financial advisers use Instagram.
- Many clients and prospects use social media as a source of information and a communication channel to get their clients more engaged with the financial advisers.
- Twenty-eight percent of financial advisers use social media to get clients and 6% to 10% of prospects come from social media usage.
IF THE FINANCIAL BRAND HAS A CRISIS, CUSTOMERS USE INSTAGRAM TO HUNT DOWN THE BRAND WITH HARSH COMMENTS
- Instagram is a customer service platform and customers use this to ask questions and make their feelings heard when problems occur, sometimes in a harsh way.
- A recent issue is experienced by TSB Bank UK, when this online bank experienced a crisis breaking out on social media. There’s no way of knowing how the crisis will spread.
- The more frustrated people get, the more they use Instagram as a tool to hunt down the financial brand because it has presence and comments.
- Although TBS bank hadn't posted anything since March 2018, people still commented to old posts because of the fraud problem.
- Majority of fraud claims across UK banking are from innocent victims who have been targeted by criminals and organized gangs. Because of this, TSB bank will refund fraud victims.
- This started when the bank had major upgrade of its system and warned 1.9 million of its customers that some services such as online banking, making payments or transferring money, wouldn't be possible for several days and continued for six weeks.
- Furious TSB users vented their anger at the bank, complaining everywhere on social media from Twitter to Instagram.
The research team scoured through news sites, business sites, financial sites from UK such as BBC, dailymail.co.uk and mirror.uk. We looked for insights on how/if customers are using Instagram as a customer service platform and were able to find relevant data to compose an answer.